Capital Lease Funding Agrees to Acquire $97.5 Million of United States Government Properties.

NEW YORK -- Capital Lease Funding, Inc. (NYSE: LSE) announced today it has signed definitive agreements to acquire five separate real properties all leased entirely to the United States Government for an aggregate purchase price of $97.5 million. Two properties are located in Birmingham, Alabama, one in Sandy, Utah, one in Kansas City, Kansas, and the fifth in Austin, Texas. The properties aggregate approximately 292,000 square feet of rentable space and have a weighted average remaining lease term of approximately 16 years. The acquisitions are scheduled to close on July 22, 2005, although closing is subject to our satisfactory completion of due diligence procedures and other customary closing conditions and, therefore, the timing and certainty of the acquisitions cannot be assured.

Paul McDowell, Chief Executive Officer, stated, "The acquisition of these five properties leased to the United States Government marks our continued penetration of this market. We believe that owning properties leased to the Federal Government will provide exceptionally stable, long-term returns for our shareholders."

About the Company:

Capital Lease Funding, Inc. (NYSE: LSE) is real estate investment trust, or REIT, focused on financing and owning commercial real estate that is net leased primarily to single tenants with investment grade or near investment grade credit ratings.